Business
Result Energy Inc. boosts production and reserves
Result Energy Inc. boosts production and reserves.
About this update from Route 109 Resources Inc.
[{"type":"text","content":"\n\n\n\n\nTSX Venture: RTE\n\nCALGARY, Nov. 7 /CNW/ - Result Energy Inc. is pleased to announce\nsubstantial increases to natural gas reserves and daily production volumes.\nThe Corporation's recent reserve update indicates a 55% increase to\nproven plus probable (P+PA) reserves from 2.2 million boe at December 31, 2005\nto 3.4 million boe at September 30, 2006. Based on forecast pricing the net\npresent value of Result's P+PA reserves discounted at 5% is estimated at\n$62.5 million and the Company's reserve life index (R.L.I.) is 7.3 years.\nReserve volumes and NPVs noted are the estimates provided by third party\nreserve engineering firms. The estimated NPVs for the Company's oil & gas\nreserves do not include the value of undeveloped land, seismic data, or income\ntax pools.\nResult's year-to-date finding and development costs were $9.75/boe on a\nP+PA basis. Key additions have been booked at Worsley/Eureka in the Peace\nRiver Arch project area and in the Greater Dodsland project area.\nAt Eureka Alberta, Result participated for a 50% working interest in two\nnew Devonian gas discoveries. Both discoveries were completion tested at rates\nexceeding 1,000 mcfd gross - the first has been tied in and is on production\nand the second is expected to be tied-in and producing early in 2007. In the\nDodsland project area, Result successfully drilled and tested a\n4-well-per-section pilot down spacing program for Viking shallow gas. The\nCompany was also successful in drilling additional Viking gas prospects at\nDruid and East Dodsland.\nAverage daily production increased 69% from 560 boed in December 2005 to\n945 boed in September 2006. As of November 1st, Result's corporate production\nwas 1,253 boed with a further 1,450 mcfd (240 boed) tested and \"behind pipe\".\nThese behind pipe volumes are expected to be brought on over the next 2 to\n3 months.\nIn commenting on the program success enjoyed to date, Mr. Bill Matheson,\nPresident and CEO of Result Energy noted; \"We are especially pleased with our\n2006 FD&A costs, especially in light of the escalating costs for oilfield\nsupplies and services. This represents top performance and it validates our\nongoing strategy of growth via the drillbit. We have continued to generate\nhigh quality prospects and because of the relationships we've developed\nthroughout the industry we ha...